Rollins (NYSE:ROL) Posts Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Rollins (NYSE:ROL) issued its earnings results on Wednesday. The business services provider reported $0.25 EPS for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.02), Zacks reports. Rollins had a net margin of 14.02% and a return on equity of 37.60%. The business had revenue of $912.91 million during the quarter, compared to analysts’ expectations of $925.08 million. During the same period in the prior year, the business posted $0.22 EPS. The business’s revenue was up 9.7% on a year-over-year basis.

Rollins Stock Down 12.4%

Shares of ROL traded down $8.14 during trading on Thursday, reaching $57.46. The company’s stock had a trading volume of 6,157,073 shares, compared to its average volume of 2,440,762. The company has a market cap of $27.85 billion, a price-to-earnings ratio of 53.73 and a beta of 0.78. The company has a quick ratio of 0.71, a current ratio of 0.77 and a debt-to-equity ratio of 0.32. The company has a fifty day moving average of $61.52 and a two-hundred day moving average of $59.04. Rollins has a twelve month low of $49.73 and a twelve month high of $66.14.

Rollins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Wednesday, February 25th will be given a $0.1825 dividend. This represents a $0.73 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Wednesday, February 25th. Rollins’s dividend payout ratio is presently 68.22%.

Analyst Ratings Changes

Several research firms have commented on ROL. UBS Group set a $65.00 price objective on Rollins in a research report on Wednesday, January 21st. The Goldman Sachs Group reiterated a “buy” rating and issued a $64.00 target price on shares of Rollins in a research note on Thursday, October 30th. Jefferies Financial Group set a $66.00 price target on Rollins and gave the stock a “buy” rating in a research report on Monday, November 3rd. Sanford C. Bernstein restated an “outperform” rating on shares of Rollins in a report on Tuesday, December 2nd. Finally, Morgan Stanley raised shares of Rollins from an “equal weight” rating to an “overweight” rating and increased their price objective for the company from $58.00 to $72.00 in a research report on Wednesday, December 17th. Ten investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $66.42.

Key Rollins News

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: Company delivered its 24th consecutive year of revenue growth and reported double‑digit revenue, earnings and cash‑flow growth for FY‑2025; organic revenue growth remains positive (5.7%). PR Newswire: Rollins Reports Q4 and FY2025 Results
• Positive Sentiment: Some sell‑side analysts see the miss as a buying opportunity — William Blair reiterated a Buy on weakness, viewing Rollins as a durable pest‑control compounder. TipRanks: Buy on Weakness (William Blair)
• Neutral Sentiment: Company posted investor materials and a conference call/transcript (useful for guidance/comments that could move the stock next). MarketBeat: Q4 Release & Conference Call
• Negative Sentiment: Q4 EPS missed estimates — reported $0.24–$0.25 (variously reported) vs. consensus ~$0.27; revenue ~$912.9M also missed estimates (~$925–936M). The headline miss drove immediate selling. Zacks: Q4 Earnings & Revenue Miss
• Negative Sentiment: Company cited weaker demand for pest‑control services—Reuters flags softer demand as a driver of the shortfall. Reuters: Weaker Demand Cited
• Negative Sentiment: Management and articles point to erratic weather hurting revenue/profit in the quarter — a likely cause of volatile near‑term revenues. MSN: Erratic Weather Weighed on Q4
• Negative Sentiment: Market reaction: multiple headlines and trading data show a premarket/prompt share plunge and elevated volume as investors sold into the earnings miss. Investing.com: Shares Plunge After Q4 Miss
• Negative Sentiment: Third‑party summaries flag margin pressure and softer operating cash flow; Quiver highlights rising costs, modest margin compression and notable insider selling (may weigh on sentiment). Quiver: Q4 Metrics, Cash Flow & Insider Activity

Insiders Place Their Bets

In other news, CEO Jerry Jr. Gahlhoff sold 1,307 shares of the business’s stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $62.83, for a total value of $82,118.81. Following the completion of the sale, the chief executive officer owned 327,079 shares of the company’s stock, valued at approximately $20,550,373.57. The trade was a 0.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Gary W. Rollins sold 10,355 shares of the company’s stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $62.83, for a total transaction of $650,604.65. Following the completion of the sale, the chairman owned 5,312,114 shares in the company, valued at approximately $333,760,122.62. This trade represents a 0.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 61,545 shares of company stock valued at $3,850,173. 4.47% of the stock is owned by insiders.

Institutional Trading of Rollins

Several hedge funds and other institutional investors have recently bought and sold shares of the company. MUFG Securities EMEA plc bought a new position in Rollins during the 2nd quarter worth approximately $47,000. Geneos Wealth Management Inc. raised its position in shares of Rollins by 75.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 870 shares of the business services provider’s stock valued at $47,000 after acquiring an additional 375 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in Rollins during the fourth quarter worth $75,000. GW&K Investment Management LLC lifted its stake in Rollins by 71.6% during the fourth quarter. GW&K Investment Management LLC now owns 1,304 shares of the business services provider’s stock worth $78,000 after purchasing an additional 544 shares during the last quarter. Finally, Advisory Services Network LLC acquired a new position in Rollins in the third quarter worth $107,000. 51.79% of the stock is owned by institutional investors.

Rollins Company Profile

Rollins, Inc (NYSE: ROL) is a provider of pest and termite control services operating through a network of subsidiaries and franchises. Headquartered in Atlanta, Georgia, the company offers a broad range of pest management solutions for both residential and commercial customers, positioning itself as a specialist in protecting property and public health from pests and vectors.

Its service offerings include general pest control, termite inspection and treatment, bed bug remediation, mosquito and vector control, wildlife exclusion, and related specialty services.